Introduction to Trading

Introduction to Trading

Introduction to Trading

Following the end of the WWII, the world was in an absolute mess. This forced the developed countries to work rapidly on a public system to help stabilize world economy. They succeeded in operating this system under the name of Bretton Woods System, which stipulates to connecting exchange rates to gold. The system worked until it was canceled in 1971 as a result of developments in the world, rendering it ineffective. The United States of America took the lead to set exchange rates through supply and demand, where they succeeded in this matter along with technological development.

The 1990s were the start of online trading platforms by banks to set direct prices and execute orders immediately.

What is Trading?

Trading is the purchase of various financial assets and frequent sale of them, i.e. the trader speculates on price movements without retaining the asset for a very long period because there is no ownership of the asset.

The profits from trading are earned when the value of the asset rises or declines, because you can buy it or sell it without owning it. This is called a short sale, which is feature of trading market.

Negotiable Assets

Negotiable assets are any asset that can be bought or sold in a cash currency in the market. The most common assets are currency pairs, primarily (Euro/Dollar). In addition, commodities such as corn and wheat, and precious metals such as (gold, silver, copper), as well as shares and corporations shares.

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